Custody Battle in the Age of Cryptocurrency – Bitcoin No-Risk Exposure

Bitcoin is claimed to be a
payment mechanism which will change the way payments are made, eventually
influencing economics and even politics. Bitcoin critics have the opposite
view. They opine that Bitcoin will
suffer inevitably, and there might be a dramatic collapse.

BitGo stated in its blog post,
“The clients calling us are concerned about the safety of their digital
assets.” This BitGo says in its
attempt to bring down the importance of Coinbase and its custody business
activity. BitGo further fueled the
process stating that they will be offering qualifying clients with a year of
custodial service completely free of charge.

Keeping custody of customer’s
crypto assets is becoming a big business, and giants are competing among
themselves to scoop their stakes in this business. In summary, the
cryptocurrency custody battle is brewing.

Brian Armstrong opines, “The
institutional space for crypto is going through a period of incredible growth.
Many still don’t realize it.” He
further stated, “Custody has been a huge unlock for the industry.”

In reality, a very practical unlock
will happen only when the regulators’ issue guidance, which is clear concerning
cryptocurrency.

Davis Polk stated that Robert A.
Cohen will be a member of White Collar Criminal Defense and Government
Investigations Group. By virtue of this
membership, Robert A. Cohen, the former chief of Cyber Unit at the US
Securities and Exchange Commission (SEC) will be representing companies and
boards in matters concerning regulation and compliance.

Bitcoin halving is approaching in
May 2020. Bitcoin is becoming an unlikely haven. However, not all are of a
similar opinion. The volatility of
Bitcoin is considered a plus, and it is not tied to the same forces, which
currently drives the stocks and bonds market.

Evan Quo
stated, “There have been almost ten years of data to suggest that the coin
has no risk exposure to precious metals, commodities, equities, currencies and
so on.”

About The Author

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche.